A Theory of Industrial

Development

Rostow’s Model of
Development
 The choice between various
development alternatives is
influenced by the type of
political system governing a
country.
 Rostow’s stages of economic
growth identifies 5 stages of
development, applicable to all
societies, but viewed from a
market perspective.
5 Stages of Economic Growth:

1. The Traditional Society

2. Preconditions for takeoff
3. Takeoff
4. Drive to Maturity
5. The Age of High Mass Consumption
1. The Traditional Society

 The essence of a traditional

society is that the people
have little collective ability to
raise their economic
productivity because they
lack the technical and
scientific knowledge to do so.
 These societies devote a
high proportion of their
resources to farming.
 Political power is
concentrated in the hands of
the landowners.
 Family and inheritance are
highly valued.
2. Preconditions for Takeoff
 It takes time to alter a
traditional society because
old beliefs are difficult to
challenge.
 5 Signs of the preconditions for
takeoff:
1. growing acceptance of
technology,
2. a rapidly increasing population,
3. the growth of education,
4. rise of banks, and
5. the growing efficiency of farming.
 The diminishing number of
farmers must be able to feed
the swelling urban
populations and prevent
unemployment in the towns
by demanding industrial
products.
 3. Takeoff
 Takeoff occurs when the
bulk of society has come to
accept and favor the idea of
change. Output per person
increases enormously, and
real wages rise.
 The country as a whole
benefits from advances in a
few leading industries.
 Another characteristic of
takeoff is the widespread
diffusion of literacy which
results from compulsory
education.
 Health care improves and
life expectancy increases.
4. Drive to Maturity

 This is a long period of

sustained change.
 Technology gradually
spreads throughout all
areas of economic activity.
 Society adapts to the changes,
universal education and
medical facilities are created as
well as democracy becomes
established.
 The government begins to
appropriate larger proportions
of the national wealth.
 As the old ways die, people
begin to feel free in their
choice of beliefs.
5. The Age of High Mass
Consumption

 During this age, the leading

sectors shift more toward
services, especially those of
finance, information and
government.
 Material production
continues, social welfare
becomes a higher value,
and people talk of the quality
of life rather than of the
standard of living.
 There is a broad range of
choice, not only for the
individual, but for the whole
of society
End!